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18 Sep 2014PROPERTY: Only the Brave Would Build An Office Without a Plan
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“Although there are areas in the office property market where business is good, there is still, in general, a high level of vacancies. This means that if one simply builds an office, there is no guarantee that a tenant, or tenants, will be found. If one is going to speculate, then speculate on a small scale.”
The successful developers are always the ones with a plan in hand.
Issuing a caveat, Geldenhuys said that investors should avoid developing bespoke buildings.
“It might sound extremely exciting – and lucrative – but a bespoke building could be a disaster waiting to happen – because there might not be any demand for it in the future.”
It appears the sweet spot in the office property market is a 150 square metre office. So, when developing a building, divide it up into units of 150 square metres.
This blueprint, according to Geldenhuys, is literally recession-proof – as there will always be demand from tenants.
Business News Sector Tags: Property|
